Tuesday, June 28, 2011

Pandora Media (P) - Stock Stability and Elevated Vol

P is trading $17.40, up 5.3% with IV30™ up 1.6% as of ~10:45am EST. The Livevol® Pro Summary is included below.


Click for Free Trial


Pandora Media, Inc. (Pandora) is an Internet radio in the United States. As of January 31, 2011, it had over 80 million registered users. The stock IPO’d 6-15-2011 with an initial offering price of $16.00. Since then its range has been [$12.16, $26.00]. That high price was achieved on the opening day, since then the high price was actually hit today, in the $17.65 range. The Stock price chart is included, below.

It’s difficult to complete any real analysis on the implied vol and the historical vol as there’s so little history, but, we can compare implied vols of each month to each other. Let’s turn to the Skew Tab.

We can see the front month is elevated to the back – more than a 9 vol point difference. In particular, the vol diff between the 15 strikes is nearly 11 vol points.

I wrote about this one for TheStreet.com (OptionsProfits) so no specific trade analysis here, but the stability of the equity price since the low was reached is compelling as is the vol difference between the front two months.

The Livevol® Pro Options Tab is included below, for completeness.

This is trade analysis, not a recommendation.

Follow Live Trades and Order Flow on Twitter: @Livevol_Pro

Legal Stuff:

No comments:

Post a Comment